Premier Foods considers hiking prices of household favourites like Mr Kipling and Bisto ‘due to falling pound’

PREMIER Foods, the supplier of iconic brands such as Mr Kipling cakes and Bisto gravy, is considering hiking prices after the Brexit vote.

A combination of a weak pound and higher raw material prices has lead to talks with major UK supermarkets.

Premier Foods last month entered discussions with the likes of Tesco, Sainsbury's and Asda due to growing pricing pressures as a result of the EU referendum.

A spokesperson from Premier Food said: "We take a blended approach to managing cost increases driven by currency and commodity factors.

We look to manage our own efficiencies, adjust promotional mechanics and formats where appropriate and finally look at limited price increases where these can't be avoided.

"The situation on pricing differs between our different categories and brands and is currently under discussion with our individual retail customers. However, on average we are considering rises around the mid single digit mark."

Premier Foods' other products include Ambrosia Milk, Cadbury cakes, Oxo cubes, Angel Delight and Homepride Flour.

The company hopes to reach a conclusion by the end of this month and said any price increases would be taken as "a last resort."

Clive Black, retail analyst at Shore Capital, said any price rises would go through a "fine mesh" with the supermarkets.

It remains to be seen whether the price increases for them will push up prices for consumers.

Consumer giant Unilever demanded higher prices for its products - including Marmite and PG Tips - last year because of the plummeting pound.

Tesco, the UK's biggest supermarket, initially refused to pay the higher price and a caused short stand-off between the two companies.

They eventually reached a deal after Unilever caved in over price hikes.

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